As organizations grow, their finances naturally become more complex. Particularly in churches and non-profits, financial complexity increases drastically when people begin to earmark funds. Earmarks can be helpful when raising funds for specific causes and projects. However, many organizations hand out earmarks and designations like candy, and this increases their accounting complexity drastically.
Before making designations, consider the use of the funds: for a specific project, earmarks work well. For things that are part of the usual and general operations of the organization, consider broader uses of funds, so that there is less complexity and greater flexibility in accomplishing the core mission purpose of your organization. Use your most restrictive funds first, leaving you with more freedom down the road.
Design Group International Consultants can assist you and your organization in bringing simplicity to your financial structure. Click on the button below to contact us to see how we might work together!